Forex

Gold posted smart gains amid thin volumes in most domestic markets, in line with firm global trends. In Mumbai, gold touched Rs 13,170 per 10 gm, revealing a gain of Rs 205 in a single day. The prices have gone up by nearly Rs 2,000 since January 11, 2008, when it closed at Rs 11,355 per 10 gm in Mumbai bullion market. The metal had created history on March 17, this year when finished the business at Rs 13,495 in Mumbai.

Traders attributed the firm trend to the rising inflation rate, which touched a high of 11.89% for the week ended June 28, and a slide in the dollar value. The high crude prices are also doing their bit to push up prices in international markets, they said. In global markets, gold gained more than 2% to $967 an ounce at one point in time — its highest since March 19.

In London, spot gold stood at $962.60/963.60 an ounce from $944.10/945.30 in New York on Thursday.
In Kolkata, the prices went up by Rs 185 to touch Rs 13,360 per 10 gm, while in Delhi markets the metal made a handsome gain of Rs 110 to end the day at Rs 13,255 per 10 gm.

Traders said the high prices have cut demand for gold jewellery drastically. “Now, we are receiving more sellers than buyers because consumers prefer to cash out at the current level,” said Prakash Jain of Jugraj Kantilal and Co, a leading bullion merchant in Zaveri Bazar.

Some traders said the rising geopolitical tensions are also adding to the pressure. They said considering the stand-off between Iran and the US, prices are unlikely to come down in near future. A similar firmness was noticed in silver prices on sustained support from upcountry buyers after a steep rise in international prices. In spot markets, ready silver (.999) became costlier by Rs 135 in Mumbai before finishing the business at Rs 25,300 per kg, while in London it rose to $18.72/18.77 an ounce from $18.28/18.33 in New York on Thursday.